Federal Public Prosecutor’s Office vs. Federal Government, State of Pará, and CAAP (International carbon credit contract in Pará and illegalities)

In June 2025, the Federal Public Prosecutor's Office (MPF) filed a Public Civil Action (ACP) against the Federal Government, the State of Pará, and Companhia de Ativos Ambientais e Participações do Pará S.A. (CAAP) in defense of the interests of traditional peoples and communities, due to the signing of an international Emissions Reduction Purchase Agreement (ERPA). The ERPA agreement was signed in 2024 between the State of Pará, represented by Companhia de Ativos Ambientais e Participações do Pará S.A. (CAAPP) and the LEAF Coalition, composed of the governments of the United States, the United Kingdom, Norway, the Republic of Korea, and large global corporations, for the sale of carbon credits or verified emission reductions through the jurisdictional REDD+ system in Pará, which is still under construction. It is alleged that the contract is illegal and null and void in its conception, as it contains provisions contrary to the provisions of the Brazilian Greenhouse Gas Emissions Trading System Law - SBCE (Federal Law 15.042/2024); it was signed without free, prior, and informed consultation with the affected indigenous and traditional communities; and it interferes with the process of building the jurisdictional REDD+ system in Pará, also to the detriment of these communities. The MPF requested as an injuction (i) the immediate suspension of the effects of the Emissions Reduction Purchase Agreement; (ii) the temporary suspension of the State of Pará's eligibility for access to payments under the REDD+ system until the REDD+ Jurisdictional System is approved and brought into line with the SBCE Law; and (iii) that the Federal Government refrain from authorizing the direct participation of the State of Pará before the international certifier ART-TREES, as long as the Jurisdictional System does not comply with the SBCE Law. As final requests, MPF requests (i) confirmation of the injunction; (ii) declaration of nullity of the ERPA contract; (iii) that the Union revoke CONAREDD+ Resolution 10/2022, removing the eligibility of the state of Pará to receive REDD+ payments until the system is adapted to the SBCE Law; (iv) that the Federal Government refrain from granting a letter of authorization for Pará's direct participation before an international certifier if its jurisdictional system does not comply with the SBCE Law; and (v) that Pará be ordered to pay collective moral damages of R$200,000,000.00. The court denied the injunction because the arguments presented by the plaintiff were generic and abstract and did not justify granting the preliminary injunction; furthermore, the interests of traditional peoples and communities were protected by the provisions of the contract.